Sunday , 21 July 2024

There Are Only Two Choices: Inflation (hyper?) Or Implosion

Economist John Williams, founder of, says the Federal Reserve has painted itself into such a tight corner with the economy it really has only two choices, inflation or implosion.

What would happen to the financial system if the Fed stopped printing massive amounts of money for stimulus and debt service?

According to Williams:

  • “You could see financial implosion by preventing liquidity being put into the system.
    • The system needs liquidity (freshly created dollars) to function and, without that liquidity, you would see more of an economic implosion than you have already seen…”

Is the choice inflation or implosion?

According to Williams:

  • “That’s the choice, and I think we are going to have a combination of both of them that will eventually [result in]…a hyperinflationary economic collapse…
  • The exploding money supply will lead to inflation.  I am not saying we are going to get to 75% inflation—yet, but you are getting up to the 4% or 5% range, and you are soon going to be seeing 10% range year over year…and, when the Fed has to admit the official inflation rate is 10%…my number is going to be up to around 15% or higher.  My number rides on top of their number.”

Right now, the inflation rate, calculated the way it was before 1980 when the government started using accounting gimmicks to make inflation look less than it really is, is above 11%…and is the true inflation rate that most Americans are seeing right now, not the “official” 4.25% recently reported.

What is the best way to fight the inflation that is already here? 

According to Williams:

  • “Canned food is a tangible asset, and you can use it for barter if you have to.
  • Physical gold and silver are the best way to protect your buying power over time. Gold may be a bit expensive for most, but silver is still relatively cheap. Everything is going to go up in price.”

When will the worst inflation be hitting America?

According to Williams:

  • “I’m predicting for something close to a hyperinflationary circumstance, and effectively a collapsed economy, in early 2022.”
Editor’s Note:  The original article has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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